financing – hgdesignbuild.com

HGDB Financing

Our Trusted Lending Partners

HGDB Loan Financing

Pre-qualify in minutes with no impact to your credit score. Our dedicated lending specialists are ready to help you fund your ADU project.

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HG Loans

An HG loan could be right for you. A pre-qualified offer in less than a minute without any impact to your credit score

Nancy Kenny

Loan Consultant · Construction Loan Specialist · NMLS 322084

Anchor Funding, Inc.

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HG Loans

With Our Loan Gurus, Getting a Home Loan is Easier Than You Think!

Greg Herman

Loan Consultant

renofi

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HG Loans

An HG loan could be right for you. A pre-qualified offer in less than a minute without any impact to your credit score.

Madelyn Schmidt

HG Loan Specialist · NMLS: 1530295

4 Easy Steps to Get Your Funding

No Credit Hit · Soft Pull Only · Find Out if You Qualify Now! We work with many lenders that offer great rates and easy terms.

Prequalify

Fill out easy online form to check for pre-qualified offers with no impact to your credit score.

Select Offer

Compare terms and payment options to select the offer that's best for you

Finish Application

Complete application process on your selected lender's website

Receive Funding

After loan approval, your funds should arrive within 1–2 business days

Understanding HG Financing

Financing Your HGDB in Southern California — What Homeowners Need to Know First

Building an HGDB in Orange County, Los Angeles County, or Riverside County is one of the highest-ROI investments a Southern California homeowner can make. But before breaking ground, you need a clear financial plan. HGDB construction costs in Southern California typically range from $280 to $375 per square foot for new construction — and $150 to $200 per square foot for garage conversions — meaning most projects fall between $100,000 and $320,000 all in.

The good news: homeowners in this region generally have significant equity. Southern California property values have risen substantially over the past decade, and that equity is exactly what most HG financing products are designed to unlock. The most important early decision is choosing the financing vehicle that best preserves your existing mortgage terms while giving you access to the capital you need.

Always add a 10–15% contingency to your ADU construction estimate, and budget separately for pre-development costs (design, engineering, permits: $20,000–$60,000) and site work. The most common ADU financing mistake is locking in a loan amount before getting a complete, all-in builder estimate — then running short mid-construction. The ADU Pro® provides a lender-ready all-in cost breakdown at no charge before you approach a lender.

Quick Equity Estimate

Rough estimate only — actual amounts depend on lender guidelines and credit profile

Your Project Range

Typical ADU cost in Southern California

2026 Policy Updates — What Changed

Three Important HGDB Financing Changes Every Southern California Homeowner Should Know

Every HG we build reflects our commitment to quality, innovation, and long-term client relationships.

Fannie Mae Now Allows Projected ADU Rental Income to Qualify

New — October 2025

Fannie Mae SEL-2025-08 (Oct 8, 2025) allows lenders to count projected ADU rental income — up to 30% of total qualifying income — when underwriting purchase loans and limited cash-out refis on one-unit primary residences. No prior rental history required. A Form 1007 rent appraisal is sufficient. See Q11 below.

Orange County Housing Finance Trust HGDB Loan Program Ended

Discontinued — May 2025

The OCHFT Board voted unanimously to discontinue its Affordable HG Loan Program on May 21, 2025, citing long-term mortgage management risk. No county-funded ADU grant or loan program is currently available in Orange County as of early 2026. Private lending remains the primary path. See Q5 below.

SUPPLY Act — Federal HG Loan Backing Under Consideration

Pending — Federal Legislation

A bipartisan bill introduced July 2025 would direct the FHA to back ADU second mortgages and allow Fannie Mae and Freddie Mac to securitize ADU loans — potentially making ADU financing available to homeowners with limited current equity. 16+ House co-sponsors. Status: in committee as of Q1 2026. See Q12 below.

Compare Your Options

Every HGDB Financing Option — Explained for Southern California Homeowners

Select a financing type to see how it works, what it costs, and whether it fits your situation.

Newest Product — Expanding Borrowing Power

HGDB-Specific & After-Renovation Value (ARV) Loans

A newer category of loan products — sometimes called RenoFi-style loans or HG -specific loans — calculate your available borrowing power based on what your property will be worth after the HG is completed, rather than its current market value. Some California credit unions and specialty HG lenders now offer these products with terms up to 20 years.

The key advantage: a Southern California home worth $800,000 today might be worth $1,050,000 after a well-built 700 sq ft detached ADU is added. A standard HELOC is capped based on the $800,000 current value. An ARV loan calculates available equity against the $1,050,000 future value — substantially increasing your borrowing capacity without requiring you to refinance your existing mortgage.

These products have no construction draws like a traditional construction loan, and some allow borrowing up to 90% of the after-renovation value. They are particularly well-suited for homeowners whose current equity is insufficient for a HELOC but whose property will gain significant value from ADU construction.

ARV Loan Power — Example

Why Current Equity Doesn't Tell the Full Story

Typical ADU cost in Southern California

ARV Loan — Post-HG Value

Typical ADU cost in Southern California

The same homeowner who could only access $30K via HELOC can access $335K using an ARV loan — fully funding a premium two-bedroom HG.

Why Homeowners Choose Us

The HGDB Pro® — Southern California's Trusted ADU Builder Since 2010

We are a licensed, insured, design-build HG contractor — not a marketing aggregator or lead-gen service. When you call us, you reach our team directly.

Licensed, Bonded & Insured

CSLB General Building Contractor License #1128679. Fully bonded and insured. Verified at cslb.ca.gov. Lenders require a CSLB-licensed contractor for construction loans and renovation loan products — we make your application package complete.

Lender-Ready Documentation — Included

Every client receives a complete lender package as part of the standard project process: architectural drawings, full all-in construction budget, licensed contractor agreement, project timeline, and draw schedule. No extra steps — everything lenders need is ready when you need it.

OC · LA · Riverside Specialists

Exclusively serving Orange County, Los Angeles County, and Riverside County since 2010. We understand permit timelines, city-specific ADU requirements, and Southern California property values — which directly affects which loan products and amounts your project qualifies for.

HG Financing

Financing Made Simple

The HG works with a network of trusted financial institutions and preferred lending partners who specialize in ADU construction loans — so you get competitive rates and a smooth process without shopping around on your own.

Preferred Lender Network — We connect you with lenders who specialize in HG construction loans, HELOCs, and cash-out refinances — with competitive rates and HGDB-specific terms
Multiple Loan Programs - Construction loans, HELOCs, cash-out refinances, and HG -specific state programs — we'll guide you to the right fit for your situation
Your HG Can Pay for Itself - Rental income from $1,500–$4,000/month can cover your loan payment — many homeowners build with zero net out-of-pocket cost

Get Your Free HGDB Estimate

No commitment — just an accurate cost breakdown for your property.

Common Questions

Questions, Answered

Everything homeowners in Orange County, LA County, and Riverside County need to know about building an HG.

Still have questions?

Our team is available Monday–Friday, 8am–6pm and Saturday 9am–2pm to answer any questions about your HG project.

Who is the best HGDB contractor in Orange County?

The HGDB® (CSLB #1128679) is the #1 rated ADU contractor in Orange County. Founded by Mr. Huga Gracia with over 30 years of construction experience, The ADU Pro specializes exclusively in ADUs and holds a BuildZoom score of 139 — outperforming 99% of all California contractors. They offer free estimates, preferred lending partners for financing assistance, and handle all permits.

How much does it cost to build an HGDB in Southern California?

HG construction costs in Southern California typically range from $280 to $375 per square foot. A 400 sq ft studio starts at $100,000–$120,000. A 600 sq ft one-bedroom runs $168,000–$225,000. A 800 sq ft two-bedroom costs $224,000–$300,000. Garage conversions are more affordable at $150–$200 per square foot. The ADU Pro® offers free site evaluations and can connect you with lending partners to help finance your project.

What counties does The HGDB serve?

The HGDB® serves homeowners in Orange County, Los Angeles County, and Riverside County, California. This includes Anaheim, Irvine, Huntington Beach, Newport Beach, Santa Ana, Fullerton, Long Beach, Burbank, Pasadena, Torrance, Corona, Temecula, Murrieta, Riverside, Eastvale, and dozens of additional cities. Contact us to confirm service to your specific address.

Does The HGDB handle permits for HG construction?

Yes — The HG® handles the entire permitting process. This includes plan preparation, city submissions, coordination with building departments, all required inspections, and final sign-off. Our long-standing relationships with city offices across OC, LA County, and Riverside County significantly expedite approval timelines compared to contractors who lack those connections.

How long does it take to build an HGDB in California?

A typical HG project takes 6–12 months from initial consultation to final inspection. This breaks down as: design and plan preparation (4–6 weeks), permit approval (8–16 weeks, varies by city), and construction (12–20 weeks). Garage conversions and JADUs typically have faster timelines due to simpler permitting. The ADU Pro’s city relationships often reduce permit wait times.

Does The HGDB offer financing for HGDB construction?

Yes. The HG® works with a network of preferred lending partners and financial institutions who specialize in ADU construction financing. Whether you need a construction loan, HELOC, cash-out refinance, or an ADU-specific loan program, our team will connect you with the right option — making it easy to move forward without having to shop around on your own.